WuBlockchain
Binance co-CEO Richard Teng said the exchange's own hot wallet was compromised in a roughly $6.3 billion hack, while customer funds remained unaffected. He said most user assets are held in cold wallets and moved to hot wallets only for withdrawals.
Why it matters
The breach puts Binance's custody controls and ability to demonstrate asset backing in focus. Teng said the company would cover all losses and had reserved more than $6.34 billion, including $5 billion already held in affected assets: USDC, USDT, BTC, ETH and BNB.
Market impact
Binance is purchasing the remaining tokens through open-market and over-the-counter transactions. Teng said the exchange plans to release an initial Proof of Reserves for public verification on Monday. The planned disclosure will give users a way to check the exchange's reported reserves following the breach.
Frequently asked questions
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How did Binance say customer assets were kept separate from the compromised wallet?
Teng said most user assets are held in cold wallets and moved to hot wallets only for withdrawals. He said customer funds were unaffected.
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How much has Binance reserved to cover the losses?
Teng said more than $6.34 billion was reserved, including $5 billion already held in affected assets.
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Which assets were included in Binance's reported reserves?
Teng named USDC, USDT, BTC, ETH and BNB among the affected assets already held.
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How is Binance acquiring the remaining tokens?
Binance is purchasing the remaining tokens through open-market and over-the-counter transactions.
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What is Binance planning to publish for public verification?
Teng said Binance plans to release an initial Proof of Reserves on Monday.
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